Understanding the Appeals Process for Property Taxes: A Guide for Homeowners Rebuilding or Repairing Their Home
Understanding Property Tax Assessments
Property taxes are based on the Assessed Value of your home, which is determined by your local tax assessor. After significant repairs or rebuilding, your property may be reassessed to reflect its new market value. If you believe the new Assessment is too high, you can appeal the decision to potentially lower your property tax bill.
Reasons to Appeal a Property Tax Assessment
You may want to consider appealing your property tax assessment if:
Inaccurate Valuation: You believe the assessed value of your property is higher than its actual market value.
Errors in Property Description: The assessor has made errors in the property description, such as incorrect square footage or number of rooms.
Comparable Property Discrepancies: Comparable properties in your area are assessed at lower values than yours, despite being similar in size, age, and condition.
Damage Not Considered: Recent damage to your property, such as from a natural disaster, was not fully considered in the assessment.
The Property Tax Appeals Process
The appeals process typically follows several steps, although specific procedures may vary depending on your local jurisdiction. Here’s a general overview:
1. Review Your Assessment Notice
Understand the Assessment: Carefully review the notice you receive from your local tax assessor's office. This notice will include the new assessed value of your property and the deadline for filing an appeal.
Check for Errors: Verify that the assessment accurately reflects your property's features, such as the correct number of bedrooms, bathrooms, square footage, and recent improvements or damage.
2. Gather Supporting Evidence
Comparable Sales: Obtain information on recent sales of comparable properties in your area. These are often referred to as "comps" and should be similar in size, location, and condition to your home.
Professional Appraisal: Consider getting a professional appraisal of your property to provide an independent valuation. An Appraiser will assess your home's current market value, which you can use as evidence in your appeal.
Documentation of Errors: If there are errors in the property description, gather documents such as Blueprints, property surveys, or photographs that prove the correct details.
Damage Reports: If your home was recently damaged (e.g., by a flood or fire) and the repairs were not fully completed, provide documentation such as insurance claims, Contractor estimates, or photographs showing the extent of the damage.
Loti can help:
In addition to keeping your documents organized for insurance, our same tools can help you stay organized for processes such as these so your blueprints, photos and surveys are all in one place.
3. File Your Appeal
Understand Deadlines: Be sure to file your appeal by the deadline stated in your assessment notice. Missing this deadline typically means you will lose the opportunity to challenge the assessment for that tax year.
Complete the Appeal Form: Most jurisdictions require you to complete an official appeal form, which can usually be found on your local tax assessor’s website. Attach all supporting documentation to strengthen your case.
Submit the Appeal: Submit the appeal form and supporting evidence to the appropriate office, following the instructions provided by your local jurisdiction. Keep copies of everything you submit for your records.
4. Attend the Appeal Hearing
Prepare for the Hearing: If your appeal is accepted, you will likely be scheduled for a hearing before a local review board or appeals board. Prepare to present your evidence clearly and concisely.
Present Your Case: At the hearing, you (or your representative, such as a tax advisor or attorney) will have the opportunity to present your case. Be respectful, stick to the facts, and focus on the evidence that supports your claim of overvaluation.
Respond to Questions: Be prepared to answer questions from the board members or the assessor’s office. They may ask for clarification on your evidence or the reasons for your appeal.
5. Await the Decision
Receive the Decision: After the hearing, the appeals board will review the evidence and make a decision. This decision may be provided immediately after the hearing or sent to you by mail within a few weeks.
Further Appeals: If the board’s decision is not in your favor, some jurisdictions allow for a further appeal to a higher authority, such as a state tax board or court. This process is more complex and may require legal representation.
Specific Examples
Example 1: Successful Appeal Based on Comparable Sales
Scenario: A homeowner’s property is reassessed at $400,000 after extensive repairs, but similar homes in the neighborhood have recently sold for $350,000. The homeowner believes the assessment is too high.
Action: The homeowner gathers information on recent sales of comparable properties and hires a professional appraiser who values the home at $355,000. They file an appeal with this evidence.
Outcome: The appeals board agrees with the homeowner’s evidence and reduces the assessed value to $360,000, leading to a lower property tax bill.
Example 2: Appeal Due to Incomplete Repairs
Scenario: A homeowner’s home was damaged by a storm, and only partial repairs have been completed. Despite this, the property is reassessed as if the repairs were fully completed, resulting in a higher assessed value.
Action: The homeowner documents the incomplete repairs with photographs, contractor estimates, and insurance claims. They file an appeal to have the assessed value adjusted to reflect the current state of the home.
Outcome: The appeals board reduces the assessed value based on the incomplete repairs, lowering the property tax bill accordingly.
Advice for Homeowners
Start Early: As soon as you receive your assessment notice, start gathering evidence and preparing for a potential appeal. This will give you plenty of time to build a strong case.
Be Thorough: Provide as much evidence as possible to support your claim. The more documentation you have, the stronger your case will be.
Consult a Professional: If your case is complex or if the potential tax savings are significant, consider hiring a tax advisor, appraiser, or attorney to assist with your appeal.
Stay Informed: Keep track of property values in your area, particularly after a disaster or significant repair work. Knowing the market can help you anticipate changes in your property’s assessed value.
Wrap-Up
For more information on the property tax appeals process, consider visiting the following resources:
Local Tax Assessor’s Office: Your local government website typically provides detailed information on how to appeal a property tax assessment, including forms and deadlines.
National Association of Realtors (NAR): Property Taxes: NAR Property Taxes Guide
Institute for Professionals in Taxation (IPT): Property Tax Resources: IPT Property Tax
These resources can help you better understand the appeals process and provide additional guidance as you work to manage your property taxes after rebuilding or repairing your home.